The Washington State Department of Financial Institutions (DFI) has issued a public alert alarming individuals about potential crypto trading scams in the region. The DFI's Securities Division received a concerning report when an investor faced difficulties withdrawing $310,000 worth of crypto assets from Ethfinance, an alleged trading platform. The investor was introduced to Ethfinance through an unsolicited LinkedIn connection and transferred the substantial amount hoping to capitalize on cryptocurrency trading opportunities. However, attempts to withdraw funds led to requests for additional investments for a 'smart contract' by Ethfinance's customer service via Telegram, resulting in the investor's account being locked.

Although the allegations are yet unverified, the DFI highlighted similarities to 'Advance Fee Fraud' practices, where scammers demand upfront payments for promised services that are never delivered. Such schemes entice victims with high returns but demand further fees before any profits can be accessed. The DFI also issued alerts against crypto trading platforms WTOCoin and Foundation-coin, cautioning consumers about the risks of investing in deceptive platforms.

Consumers are advised to exercise caution and verify the credentials of investment professionals licensed by the DFI before engaging with investment opportunities in Washington State.